The Trump administration has committed $5 billion in loans to Constellation Energy to expand nuclear generating capacity at eight power plants by 1.1 gigawatts, capacity that has largely already been purchased by Google, Meta, or Amazon. The Department of Energy announced the loan on Tuesday, framing it as support for affordable, reliable power to American homes and businesses. The commitment has not yet been finalized.
Constellation said the financing would go toward uprating 11 existing reactors, an industry practice of raising a reactor's output, often by using more highly enriched uranium and upgrading equipment to handle higher power levels. The company said it had already committed more than $7 billion to add 1,080 megawatts of nuclear capacity for Google, Amazon, and Meta. According to Constellation, the loan commitment could lower financing costs for the projects.
The eight plants are Braidwood, Byron, Clinton, Dresden, La Salle, and Quad Cities in Illinois; Calvert Cliffs in Maryland; and Limerick in Pennsylvania. Google is the confirmed buyer of additional power from the Pennsylvania plant and four Illinois plants. Amazon is buying electricity from the Maryland plant, and Meta is effectively buying the entire Clinton plant in Illinois.
The Department of Energy's claim that the new capacity will support affordable power is not backed by evidence that it will lower prices for residential ratepayers. Constellation's announcement does not say whether the projects will maintain or lower electricity rates, and the company would not confirm the government's claim.
The deal reflects the pressure hyperscalers face as they search the grid for additional capacity to run AI data centers. Google, Amazon, and Meta are paying handsomely for energy and committing tens of billions of dollars over the coming years, and with power now a competitive advantage, that estimate is probably on the low end.
By reducing the cost of capital for the upgrades, the Department of Energy's loans could benefit Constellation's bottom line, the hyperscalers', or both.
More company and startup news from TechManNews.
